- Title: WeWork changed the industry, says competitor's CEO
- Date: 1st October 2019
- Summary: TOKYO, JAPAN (FILE) (REUTERS) VARIOUS SOFTBANK HEADQUARTERS INTERIORS MOBILE PHONES ON DISPLAY INSIDE SOFTBANK HQ SOFTBANK HQ RECEPTION AREA SOFTBANK LOGO NEXT TO MOBILE DEVICES ROBOT AT SOFTBANK HQ RECEPTION AREA VARIOUS OF SOFTBANK STORE EXTERIORS
- Embargoed: 15th October 2019 19:04
- Keywords: International Workplace Group IWG U.S. stock market
- Location: NEW YORK, NEW YORK, AND SOUTHLAKE, TEXAS, CHICAGO, ILLINOIS, UNITED STATES, TOKYO, JAPAN, UNKNOWN LOCATIONS
- City: NEW YORK, NEW YORK, AND SOUTHLAKE, TEXAS, CHICAGO, ILLINOIS, UNITED STATES, TOKYO, JAPAN, UNKNOWN LOCATIONS
- Country: USA
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA00AAZ9OJ9P
- Aspect Ratio: 16:9
- Story Text: "WeWork changed industry in a very good way," International Workplace Group (IWG) CEO Mark Dixon said of his competitor in an interview with Reuters on Tuesday (October 1).
Dixon referred to an increased understanding of the office space renting industry. He also said that the real estate market has been changing faster ever since WeWork came to play, and that IWG has benefitted from it, as well as from digitalization of work places.
"Now the catalyst for changes is very powerful," Dixon said. "More and more companies will start to allow their workers to work closer to home, not at home, but closer to home."
Dixon spoke to Reuters just one day after WeWork's parent The We Company on Monday (September 30) filed to withdraw its initial public offering, a week after the SoftBank-backed office-sharing startup ousted founder Adam Neumann as its chief executive officer.
"I'm very disappointed for WeWork," Dixon said. "I don't think anyone would want to see a company where they're having to lay off, we've heard, lots of people."
The scrapping of the IPO marks the conclusion of a tumultuous few weeks for the office-sharing firm, which failed to excite investors who raised concerns about its burgeoning losses and a business model that involves taking long-term leases and renting out spaces for a short term.
Furthermore, experts pointed out that removing Neumann from the CEO role and addressing governance issues were not enough, and that such a business model was unlikely to thrive during an economic downturn.
According to the IPO prospectus it filed earlier in September, We Company had cash and cash equivalents of roughly $2.5 billion as of June 30. However, while revenue doubled to nearly $1.8 billion in 2018, its losses also more than doubled to $1.9 billion.
(Production: Aleksandra Michalska)
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